Jay said that when the city’s Five-Year Plan was created in 1997, it was decided that HUD and risk management funds would be used for the city’s General Fund reserves. “When I said you’re reserve is $1 million it includes this money. . .I’m saying I don’t want it to go down immediately $109,000.”“There’s no legal requirement to restrict this money to housing,” said City Manager Peter Cosentini.Jay said she and the prior finance director had not reported the funds to the auditors as it was not being used for budgeting purposes. When the money was originally designated for housing the city did not have the Redevelopment Agency housing set-aside account, she added, or the Community Development Block Grants targeted for housing. “Now the city has three programs that can be used for housing programs. . .”“My intent is to restrict the money for housing and no other purposes,” said Espinosa.The council voted 4-1 to switch the HUD funding to a special account and use it exclusively for housing purposes; Johnson’s was the lone nay vote.
HUD funds to be returned for housing use, City Council decides on split vote
November 23, 2001
Santa Paula City Council
After bringing the issue back again the City Council decided on a split vote to keep leftover HUD housing money - about $109,000 - out of General Fund reserves.
By Peggy KellySanta Paula TimesAfter bringing the issue back again the City Council decided on a split vote to keep leftover HUD housing money - about $109,000 - out of General Fund reserves.The council made the decision at the Nov. 5 meeting after Glenda Jay, interim finance director, told them that the Department of Housing & Urban Development grant had been folded into General Fund reserves starting in 1997. The money originally had been received by the city for use in a housing rehabilitation program that ended in 1986; four years later the council approved using the funds in $5,000 increments for low-income families. Subsequently, some funds were used for several purposes but the majority was kept in General Fund reserves.Councilwoman Laura Flores Espinosa said the funds should be kept separate: “I think it’s important to have the funds for future housing needs in the city,” and not to continue to co-mingle the money.Councilman John Procter asked if the staff request to keep the funds in General Fund reserves was more for accounting purposes.
